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Limits set by the IRS on the amount of earnings a firm can retain for reasons that help individuals gain special benefits. Based on your

Limits set by the IRS on the amount of earnings a firm can retain for reasons that help individuals gain special benefits.

Based on your understanding of the constraints on dividend payments, identify the type of constraint this condition represents. Assume that all other factors are held constant.

a) penalty tax

b) bond indentures

c) option contract

d) impairment of capital rule

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